The highly-rated 23-year old Israeli midfielder put pen to a new deal that will see him remain at Parkhead until the summer of 2015.
There was a time recently when reports suggested Kayal wanted to move on to bigger and better things but he insists he always wanted to stay with the Hoops and will now aim to give his all to the Glasgow giants.
"When I came here last season, I said I was happy to come to such a big club and now I say I'm very happy to stay here," the Israel international told Celtic's official website.
"There were a lot of rumours last summer, but I'm here and I'm happy to stay here.
"I never said I wanted to leave Celtic. I always said I wanted to stay as I like the club and the people here, and I want to prove a lot to this club and the fans.
"The fans are important for me. I like them and they like me and this gives me energy to play and give everything for them.
"I feel happy and proud to stay here. The manager wanted me here and I always said I wanted to stay. There were rumours that another club wanted me but I never thought about leaving."